Market Comment | Markets steady ahead of US inflation data

After sterday’s widespread positive mood after easing concerns over North Korea, today financial markets were broadly steady, with little variation among stock and bond prices.

The USD continued in its recent upward trend while the EUR continued eroding its recent high level, as factors recently weighing on USD strength started to blur: geopolitical tensions, political uncertainty and hurricane effects, among others.

US Treasury yields inched up after the release of PPI inflation, which rose on the back of surging gasoline prices due to the effects of hurricanes (see). Financial markets will be closely watching the developments of US inflation (tomorrow), a key variable for the Fed to design the path of US interest rate hikes onwards.

Stock prices inched up in Europe, led by industrials and the finance sector. Meanwhile, US indices remained hovering around their highest levels despite the disappointment about the release date of the new Apple product, which affected suppliers (see)

Oil prices increased after the IEA released its report (see) pointing to lower inventories due to higher demand. Moreover, today’s release of gasoline inventories, which dropped significantly more than expected, supported the increase in oil prices.

Update 18 CET 13 September, 2017

Table 1

Source: Bloomberg, Datastream and Haver

* With one day delay

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